Finland becomes the latest to join the NIRP club as its 2 year bond reach -0.008%. So in a few weeks the club has grown to Finland, Germany, Switzerland, Denmark and Netherlands. Another sign that the euro is screwed.
The NIRP club, or those countries whose 2 Year (or longer) bonds trade inside negative territory as presented yesterday, is happy to welcome Finland among its ranks, following the country’s 2 Year bond briefly touching on -.008% minutes ago (since “recovering” to 0.0000% briefly). Other proud member countries include Holland, Germany (which earlier issued 2 Year debt at sub zero rates for the first time ever), Denmark, and Switzerland, or Europe’s AAA-list. On the other end, the peripherals continue to trade on an ever more unsustainable basis. Europe has now become one big pair trade: everyone is long the viable countries and short the… less than viable ones.
And some more color on Germany’s just concluded 2 Year bond issue which priced at -0.06% via Reuters:
Germany sold 4.17 billion euros of two-year government bonds on Tuesday, auctioning the paper with a negative yield and meeting higher demand than at the previous comparable sale. It was the first time a two-year issue had been sold with a negative yield.
The auction attracted bids worth 2.0 times the amount on offer compared with an average of 1.87 at other two-year auctions this year, according to Reuters data.
The average yield was -0.06 percent, compared with 0.1 percent last time and an average of 0.173 percent.